You need to use basic.lua. It registers LUA_FUNCTION to be custom type, that is mapped using functions defined in tolua_fix.h.
Take a look at tools\toluaand tools\tolua.php.
On the C++ side you need to include CCLuaEngine.h, LUA_FUNCTION is defined there.
For cocos2d-2.0-x-2.0.3:
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You need to use basic.lua. It registers LUA_FUNCTION to be custom type, that is mapped using functions defined in tolua_fix.h.
Take a look at tools oluaREADME and tools oluauild.php.
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On the C++ side you need to include CCLuaEngine.h, LUA_FUNCTION is defined there.